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How many prime brokers will be left?

Hedge funds have realised they need relationships with several service providers now that the numbers are falling

Last week’s collapse of Lehman Brothers had one analyst comparing the market’s plight to the song Ten Green Bottles. Lehman Brothers’ prime brokerage became the third out of Europe’s largest 11 to disappear or be swallowed this year by rivals.

Lehman’s collapse came just six months after Bear Stearns’ prime broking business disappeared into JP Morgan. Bank of America announced last week it would acquire Merrill Lynch and its prime broking unit, which is ranked sixth in Europe.

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